US wheat futures closed higher on Monday as a late rally pushed up prices amid expectations for a pickup in export business following weeks of slow demand, traders said. Light short covering also supported prices. Firm dollar limited gains for much of the day.
Chicago Board of Trade soft red winter wheat for March delivery ended 5-3/4 cents higher at $5.69 a bushel. The May contract was 5-1/2 cents higher at $5.81-1/2 a bushel. Funds bought 1,000 lots. Kansas City Board of Trade hard red winter wheat for March delivery up 6-1/4 cents to $5.89-1/4 a bushel. The May contract was 6-1/2 cents higher at $6.00-1/4 a bushel.
Minneapolis Grain Exchange spring wheat for March delivery settled 7-3/4 cents higher at $6.33 a bushel. The May contract was 8 cents higher at $6.34 a bushel. Egypt's main wheat buying agency said on Monday it wanted to buy cargoes of up to 55,000 to 60,000 tonnes of optional-origin wheat.
USDA said only 9.789 million bushels of wheat were inspected for export, below estimates for 12-15 million. Saudi Arabia expects to import up to 800,000 tonnes of milling wheat as it seeks to build up stocks while scaling back domestic wheat farming. Syria issued new tender to buy 200,000 tonnes of soft wheat, after rejecting all bids in a previous tender. Lowest bid in Pakistan tender to buy 500,000 tonnes of wheat was $207.50 per tonne c&f.
Iraq issued a tender to buy at least 50,000 tonnes of wheat of any origin. CFTC trade data shows large specs cut net short in CBOT wheat in week ended December 16. Cold weather in US Plains during weekend was not expected to have caused winter wheat damage. Fears of winterkill contributed to last week's price rally.